Essential Utilities Inc (WTRG)

Return on total capital

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Earnings before interest and tax (EBIT) US$ in thousands 715,143 689,024 629,709 453,406 336,909
Long-term debt US$ in thousands 6,826,080 6,371,060 5,779,500 5,507,740 2,943,330
Total stockholders’ equity US$ in thousands 5,896,180 5,377,390 5,184,450 4,683,880 3,880,860
Return on total capital 5.62% 5.86% 5.74% 4.45% 4.94%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $715,143K ÷ ($6,826,080K + $5,896,180K)
= 5.62%

Essential Utilities Inc's return on total capital has demonstrated a consistent performance over the past five years, ranging from 4.15% in 2020 to 5.42% in 2022. The company's return on total capital for the most recent year, as of Dec 31, 2023, stands at 5.34%. This indicates that Essential Utilities has been able to generate a positive return relative to the total capital invested in the business. While the fluctuations in the ratio over the years are relatively minor, the overall trend suggests that Essential Utilities has been effectively utilizing its total capital to generate profits for its shareholders.


Peer comparison

Dec 31, 2023